Cheetah Copy purchased a new copy machine. The new machine cost $ 140,000 including installation. The company estimates the equipment will have a residual value of $ 35,000. Cheetah Copy also estimates it will use the machine for four years or about 8,000 total hours.

Required:

Prepare a depreciation schedule for four years using the following methods:

1. Straight-line.

2. Double-declining-balance.

3. Activity-based. Actual use per year was as follows:

Year Hours Used

1 ........3,000

2 ........2,000

3 ........2,000

4 ........2,000